February 12, 2007,Alexandria, Va.
— An overwhelming majority (73 percent) of respondents in a recent
American Bankruptcy Institute online poll said that employee payment
obligations due between a chapter 11 filing and rejection of a
collective bargaining agreement should be payable as a priority
administrative expense. Fifty-six percent of respondents “agreed
strongly” and another 17 percent “somewhat agreed”
that payments to employees between the chapter 11 filing and termination
of the collective bargaining agreement are payable as a priority
administrative expense.

Nineteen percent disagreed that
employee payments should be considered a priority administrative expense
for chapter 11 debtors between the filing and termination of the
collective bargaining agreement. Twelve percent “disagreed
strongly” and another seven percent “somewhat
disagreed” that the employee payments between filing and the
termination of the collective bargaining agreement should be considered
a priority administrative expense for chapter 11 debtors.

The Poll question is
based roughly on thePeters v. Pikes Peakcase in which
the Colorado Springs Symphony Orchestra failed to pay its musicians
between filing for chapter 11 and obtaining court approval to reject the
collective bargaining agreement with the musicians. The Tenth Circuit
Court of Appeals sided with the musicians as they sought an
administrative priority for the wages payable under the collective
bargaining agreement during the five-week post-petition, pre-rejection
period.

ABI members and members
of the public were welcome to submit their response to the statement:
“The
debtor’s obligation under a collective bargaining agreement for
payments to employees due between the chapter 11 petition and the date
the debtor rejects the agreement are payable as a priority
administrative expense.(Peters v.Pikes
Peak).”The latest ABI Quick Poll was open for voting from Feb. 1 -
8.

ABI’s weekly Quick Poll
is posted on ABI’s home page,www.abiworld.org. ABI members and the public are invited to respond to a
question on a timely bankruptcy or insolvency issue. Visithttp://www.abiworld.net/quickpoll/to access the results of previous
ABI Quick Polls.

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dedicated to research and education on matters related to insolvency.
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